The National Board of Revenue (NBR) has revoked the licences of Saif Logistics Alliance Limited (SLAL) to construct and operate a new multi-modal container terminal at the Chattogram seaport following allegations of irregularities.
The move came just three days after giving primary approval for the company to handle containers in the country's largest seaport.
Official sources said the off-dock permission had been given by relaxing the inland container depot (ICD) policy of NBR on the condition of transporting goods through only the rail route. However, the customs authority now finds the company's preparation inadequate for these services.
It is a joint initiative to build the ICD by Bangladesh Railway Container Company Bangladesh Limited (CCBL) and private firm Saif Logistics Alliance.
The NBR, earlier on November 9, 2022, expressed its inability to give permission for the construction and operation of the private off-dock after it found that the entire documents and operation authority had been given to the SLAL, which needs to comply with the off-dock policy of NBR.
Later on December 5, 2022, the rail secretary sent a letter to the revenue board to review the decision as the state-owned company CCBL is the direct stakeholder of the land where the SLAL has proposed to construct the ICD.
Bangladesh Railway, under the Ministry of Rail, owned the railway container company that has signed a contract with the SLAL for the construction of a multi-modal container depot with an estimated Tk 3.0 billion to 4.0 billion.
Sources said the application was reviewed and approval was given following the pressure of influential quarters. Later, the customs wing found several allegations on the contract.
On July 2, 2023, the Customs Export and Bond wing of NBR had issued the permission to the SLAL, relaxing the condition of its ICD/CFS or Off-dock Construction and Operation Policy-2021. It has also declared 21.29 km as a bonded area, imposing some conditions.
Another official said the licence has been revoked as the permission of ICDs has been given relaxing the conditions.
According to the policies of NBR framed in 2021 and the Ministry of Shipping in 2016, any ICDs have to be established at least 20 kilometres away from the port to ease traffic congestion in the country's largest seaport.
However, the proposal for the construction of an ICD at the middle of Halishahar in Chattogram, covering 21.29 acres of land owned by Bangladesh Railway, was only 0.75 km away from the port, as mentioned in the Bangladesh Inland Container Depots Association (BICDA) letter.
In a letter jointly signed by the president of BICDA, Nurul Qayyum, and the first vice-president, Zaohar Rizvy, the association found that the approval of the ICD may create congestion in port roads and violate the policies framed for setting up ICDs.
The customs wing of NBR issued an approval letter to the SLAL on July 2 and revoked it on July 6, 2023, according to an NBR letter.
Officials said the permission was given because customs found differences in the nature of the company's ownership with the scope of the proposed ICD's ownership, and goods would be transported through the rail route.
During scrutiny, customs found that trade licences, fire licences and environment clearance certificates had been submitted by the SLAL. Even the infrastructure layout plan had been submitted by the CCBL in the name of SLAL.
These were the main reasons for giving primary approval for the construction of ICDs and allowing it as a bonded area, they said.
However, in the approval letter, the NBR had mentioned that other conditions could be imposed at the time of finally awarding the licence or renewal of it.
Earlier, the CCBL, in a letter to the NBR, said the move aims to make Bangladesh Railway profitable and expedite container movement services.
The BICDA said that though the ICD would be operated under a multi-modal system, containers would be transported via rail routes from the port to the ICD. Exported goods may create congestion while transporting from the factory to the ICD.
Imported goods will also be transported from the ICD to the factory using the roads of the port.
A source, who is familiar with the development, said the tender process for awarding the company was not transparent as only the SLAL could apply for it due to stringent conditions.
Some 15 top business houses purchased the tender, Tk 25,000 each, but none can bid except the SLAL.
Currently, some 18 private ICDs are operating in the Chattogram port. Industry insiders alleged the tender document was "tailor-made".
CCBL Managing Director Mohammad Belal Uddin said the NBR is yet to give any explanation on revoking the licences.
SLAL applied to NBR to reconsider its decision and we will also request NBR for the same, he said.NBR's policy came after the contract has been signed between CCBL and SLAL, he said.
Despite several attempts, Railways Secretary Dr Humayun Kabir could not be reached over the phone. Ministry officials said he is now in the UK. This correspondent sent him a WhatsApp message but did not get any response.
This correspondent also contacted the Chief Financial Officer of Saif Powertech, Md Hassan Raza, seeking comments from their spokesperson. However, none have commented on this issue, while the CFO said he is unaware of this development of SLAL.
Currently, Saif Powertech Limited, of the same owner, operates two ICDs in Chattogram Container Terminal and New Mooring Container Terminal.
Omar Faruk, secretary of Chittagong Port Authority (CPA), also said he is not aware of this issue of revoking the licence of SLAL.
However, this correspondent has obtained all relevant documents from the sources to support this piece.
The Registrar of Joint Stock Companies and Firms (RJSC) awarded the issued registration to the CCBL on May 17, 2016, with Rail secretary as its chairman.
On July 23, 2018, the Ministry of Railways (MoR) awarded a lease to the SLAL to construct an ICD.
On October 19, 2021, a contract was signed between CCBL and SLAL to construct the ICD on a Design, Build, Finance, Operation, Maintenance and Transfer (DBFOMT) basis through an open tender.
As per the contract, the SLAL would have to complete the construction within two years and operate it commercially for 20 years.
The SLAL will have to give 21.5 per cent of its operating income to CCBL as royalty and hand over all machinery to CCBL after the expiry of the contract.
On January 14, 2022, the government handed over the land to the SLAL.
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